Caspian and West Africa-focused oil firm Burren Energy raised its estimated reserves by 12 per cent today as it tripled annual earnings in its first results since its December flotation.
The firm's net profit for 2003 grew 147 per cent to £15.8 million sterling as oil output rose 65 per cent to 8,140 barrels per day and oil prices strengthened. Net cash was £17.6 million at year-end versus net debt of £11.7 million a year earlier.
"The numbers are a bit stronger than I was expecting, and the reserves upgrade is good news," said analyst Mr Bruce Evers of Investec. "Those Congo assets are looking very attractive."
Burren's reserves upgrade is based on four new wells drilled in the M'Boundi field off the coast of Congo Republic, where it has a 35 per cent stake. Proven and probable reserves there now stand at 36 million barrels, up from 21 million previously, raising its total reserve base to 133 million barrels.
Chief Executive Mr Finian O'Sullivan said his estimate "is going to get bigger again", and looked conservative against those of its main partner in the field, French firm Maurel et Prom, whose estimates would put Burren's share at 50 million barrels.
In December, South African firm Energy Africa paid Maurel et Prom an initial $50 million for an 11 per cent stake in M'Boundi, which was producing 9,500 bpd at the end of 2003 and is set to increase substantially this year.